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Precious Metals: Gold and Silver
Why you ask?
In 1971, Richard Nixon then President of the U.S.A., cut off the U.S. dollars relationship with Gold. He made this change because foreign countries being paid in U.S. dollars grew skeptical because the U.S. Treasury was printing more and more money to cover their debts (doesn’t this sound familiar?), and they began to exchange their dollars directly for gold and therefore depleting most of the U.S. gold reserves. The vault was being emptied because the government was importing more than it was exporting and also because of the costly Vietnam War. And as their economy grew, they were importing more and more oil. In reality, the U.S. was starting to go bankrupt and could not pay its bills as long as their bills were to be paid in gold. By freeing their dollar from gold President Nixon created a way for them to print its way out of debt.
Spending Spree _______________________________________________________________
As more and more money was printed in each decade, over time the value of their dollar began to decrease and the prices of goods and assets went up. Everyday debt by the middle-class also took off. Most recently in the last few years, credit cards were and are being given out by the banks freely, and money was flowing freely. People started using their homes for equity loans to go on expensive vacations, buying not one but two SUV’s etc., and the party was on. House mortgages were being given out freely too, to people who really couldn’t afford to make the mortgage payments. And because they couldn’t make their payments, the Banks got into trouble and their debt grew…and then the banks themselves started to go bankrupt, and this was not limited to the U.S.A., this spread throughout the globe. So governments throughout the world started bailing out the banks…by printing even more money to do so. This became known as the Subprime Crisis.
Funny Money _______________________________________________________________
And as economies around the world have been failing, fear of deflation is real and Trillions of dollars by governments have been created & spent to be used as “stimulus”, to hopefully re-ignite their economies.
And this may eventually cause a hyper-inflation.
This is known as Fiat Currency. It's funny money, and eventually becomes worthless, like used toilet paper.
But it took just 2 years, 2007-2009, to double that amount to over $1,700 billion in circulation – and money is still being printed.
And because of over-supply, the U.S. dollar is being deflated. So where is the money investment flowing to?
Today, gold and silver remain the commodities that are internationally accepted as money. This is the current wealth cycle.
And supply of silver has dramatically gone down. This is because silver is consumable, it is used in such things as cell phones, computers, light switches, and reflectors in mirrors.
And the Chinese, Russian & Indian people are now allowed to invest in gold and silver which adds more demand for them. In fact in the past, only 10% of the Worlds population were once allowed to buy gold and silver. Now 90% of the population can purchase these precious metals. This adds tremendous more demand. Theses factors add up as gold and silver precious metals Investment the right place to invest your money. Never before in history have all the world currencies been Fiat Currencies at once. There is no other place to run to, to protect your “Dollar Wealth’, as in reality governments are confiscating your wealth, buy printing more and more dollars, which is going to cause high inflation. This could be the greatest opportunity in mankind, because this is possibly the greatest Wealth Transfer in man-kind. In 2003, gold prices were $300 an ounce. Presently, prices are pushing $2000 an ounce, and Silver has hit almost $50 an ounce. And we could be still only at the beginning of this massive Bull run, in both Gold and Silver.
Two things I believe every investor should do:
2: Buy physical gold and silver and take possession of it (or have it stored at a third party depository).
OK, next question you probably want answered, what resource for precious metals do you recommend?
The company is owned and operated by a fellow named Mike Maloney.
Mike is a renowned advisor, author, and industry expert. Mike's book, Guide To Investing in Gold and Silver ,is the number-one best selling precious metals investment book of all time.
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